The Angelsoft Blog - Latest Comments in What do angels look for in a fundable deal?

Re: What do angels look for in a fundable deal?

banks — Wed, 08 Apr 2009 03:50:45 -0000

In times of recession, we are indulging in many debts/loans. And sometimes we turned to banks for support instead. We used to see Banks full of money and gold, but after billions in bailout money given to banks, I think these guys are up to something. The average amount of bank charges, for late fees, overdrafts, ATM fees, and the like, is going up. It is a bit abrupt that we, the customers as well as the taxpayers, just gave them more installments loans from our taxes. I don’t think they really helping us when in fact this is the time they must be are umbrella in “rainy days”. It seems like they had better put that bailout money to use so that those of us who paid the taxes to bail them out don't have to get installment loans for charges for using the services of these banks. Now tell me do banks really deserve our trust?

Re: What do angels look for in a fundable deal?

John Hill — Thu, 19 Mar 2009 11:31:32 -0000

So if teams are so important why not use "industrial strength" tools to assess how they fit together. After all if you enable just 5% more companies to succeed how much more profit would that produce ?

Re: What do angels look for in a fundable deal?

Stef — Mon, 16 Mar 2009 13:00:00 -0000

You mentioned that angel investors are only interested in "companies that can scale revenues quickly to at least $30M in revenues in five years or less."

What options (besides bank loans) would a company with sales projections of $5M in 5 years have? Are there angel investors willing to invest in a company that size?

Re: What do angels look for in a fundable deal?

William J. Cleary — Sun, 04 Jan 2009 17:48:06 -0000

I am totally new to this site and was pleased to see the comments of Mr. Payne. There is no question that a full and complete memorandum with 5 year projections are absolutely required and necessary. I would like to add another element to this. Prior to submitting the memorandum It may be best to create a one page summary sometimes called a Preci's. that includes a condensed version of the memorandum. You will be very surprised as to the amount of info you can fit on one page.
Thanks Bill Cleary

Re: What do angels look for in a fundable deal?

weblivz — Fri, 05 Dec 2008 11:55:57 -0000

Per the "Business plan/Strategy" paragraph - i've heard so many variations on this now from, one page is enough to the 3/5 years thing (at least at angel investment stage) - both have worked and not worked for a number of successful entrepreneurs i have met. Be interested in what other say on this point.

Re: What do angels look for in a fundable deal?

Arup — Sat, 01 Nov 2008 23:21:02 -0000

This is 100% helpful. What if you are a start-up with no financials though? Its an idea, you have created the product but there is little that you can justify on financials. I feel like that is better than creating a lot of fluff...

Re: What do angels look for in a fundable deal?

Carol Frederick — Thu, 25 Sep 2008 18:01:09 -0000

Bill, that was really helpful. I've been wondering about many of the topics you have covered. Thank you for taking your time to explain everything!

Re: What do angels look for in a fundable deal?

MyOnlineToolbox — Mon, 08 Sep 2008 15:46:07 -0000

I agree with everything EXCEPT the location comment. I am based in Florida and have "angel" investors from California, Minnesota, New Jersey, Toronto and Britain. I believe most of the "location" stereotype has to do with the fact that that most entreprenuers are not equipped to properly treat investors like partners, so the investor then needs to feel like he can simply drive to the business to get a pulse on his investment. I embrace all investors as if they are sitting right next to us regardless of location. We have weekly updates and quarterly meetings timed perfectedly to include Britain to California. I feel the angel's investment should include good management skills, including ensuring that the angel does not need to come to the office to find out what is going on. And if so, then the entreprenuer is doing himself a dis-service since opinions, suggestions, quidance is what we want in addition to money.